California State Teachers Retirement System Cuts Position in Cognizant Technology Solutions Corporation $CTSH

California State Teachers Retirement System lowered its stake in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 3.2% during the first quarter, Holdings Channel reports. The institutional investor owned 738,814 shares of the information technology service provider’s stock after selling 24,144 shares during the period. California State Teachers Retirement System’s holdings in Cognizant Technology Solutions were worth $45,326,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Empowered Funds LLC lifted its position in shares of Cognizant Technology Solutions by 24.0% during the 1st quarter. Empowered Funds LLC now owns 449,902 shares of the information technology service provider’s stock valued at $27,601,000 after acquiring an additional 87,151 shares during the period. Quantinno Capital Management LP increased its stake in Cognizant Technology Solutions by 35.1% in the 1st quarter. Quantinno Capital Management LP now owns 814,263 shares of the information technology service provider’s stock valued at $49,955,000 after purchasing an additional 211,564 shares in the last quarter. Lazard Asset Management LLC increased its stake in Cognizant Technology Solutions by 752.1% in the 1st quarter. Lazard Asset Management LLC now owns 1,317,166 shares of the information technology service provider’s stock valued at $80,808,000 after purchasing an additional 1,162,580 shares in the last quarter. Gateway Wealth Partners LLC acquired a new position in Cognizant Technology Solutions during the first quarter worth $218,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in Cognizant Technology Solutions in the first quarter valued at $334,000. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently commented on CTSH shares. The Goldman Sachs Group set a $75.00 price objective on shares of Cognizant Technology Solutions in a research report on Wednesday, April 29th. Jefferies Financial Group cut their target price on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a research report on Monday, May 4th. Morgan Stanley reaffirmed a “negative” rating and issued a $51.00 price target (up from $44.00) on shares of Cognizant Technology Solutions in a report on Thursday. Citigroup reiterated a “neutral” rating and issued a $60.00 price target (up from $45.00) on shares of Cognizant Technology Solutions in a research report on Thursday. Finally, Mizuho dropped their price objective on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating for the company in a research note on Wednesday, May 6th. Ten equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $63.17.

Cognizant Technology Solutions Stock Performance

Shares of NASDAQ:CTSH opened at $53.90 on Friday. Cognizant Technology Solutions Corporation has a 12 month low of $37.08 and a 12 month high of $87.03. The business has a 50-day moving average of $47.16 and a two-hundred day moving average of $58.58. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.18 and a quick ratio of 2.23. The firm has a market capitalization of $25.54 billion, a PE ratio of 11.59, a P/E/G ratio of 1.22 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). The business had revenue of $5.48 billion during the quarter, compared to analysts’ expectations of $5.48 billion. Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The business’s revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. As a group, research analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 18th will be given a dividend of $0.33 per share. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.4%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 28.70%.

Cognizant Technology Solutions announced that its board has authorized a stock repurchase program on Monday, May 18th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology service provider to buy up to 9% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Key Cognizant Technology Solutions News

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Management highlighted more than 8,000 AI engagements, growth in its AI platforms and a shift toward becoming an “AI builder.” The company is also organizing an OpenAI Codex hackathon involving 10,000 associates in India, supporting its strategy to scale AI-led services. Cognizant Q2 Earnings Call Focuses on AI Builder Shift
• Positive Sentiment: Second-quarter revenue increased 4.5% year over year to approximately $5.5 billion, led by 12% growth in Financial Services. Operating margins expanded, bookings rose 5% to $29.1 billion, and adjusted full-year EPS guidance was raised to $5.70-$5.82. Cognizant also repurchased about $1.1 billion of stock. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment provided some support: Wells Fargo raised its price target to $67 and assigned an overweight rating, while Morgan Stanley increased its target based on Cognizant’s differentiated AI strategy. Morgan Stanley raises Cognizant price target
• Neutral Sentiment: Cognizant declared a quarterly dividend of $0.33 per share, with payment scheduled for August 25 for shareholders of record on August 18. Cognizant dividend announcement
• Negative Sentiment: Adjusted EPS of $1.37 narrowly missed the $1.38 consensus estimate. Higher interest costs contributed to earnings pressure despite revenue meeting expectations. Cognizant Q2 earnings miss
• Negative Sentiment: The company’s third-quarter revenue outlook of $5.6-$5.7 billion was below Wall Street expectations, reflecting cautious client spending on discretionary IT projects. Full-year revenue growth guidance was revised to 4.0%-5.5%, reinforcing concerns that AI investment is benefiting infrastructure spending more quickly than software and services demand. Cognizant forecasts weak quarterly revenue

About Cognizant Technology Solutions

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.